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Devon Energy (DVN) Stock Sinks As Market Gains: Here's Why

The latest trading session saw Devon Energy (DVN) ending at $46.85, denoting a -0.93% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.85% for the day. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq increased by 1.53%.

The the stock of oil and gas exploration company has fallen by 5.1% in the past month, lagging the Oils-Energy sector's loss of 4.55% and the S&P 500's gain of 3.11%.

Investors will be eagerly watching for the performance of Devon Energy in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.29, reflecting a 9.32% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.9 billion, indicating a 12.89% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.19 per share and a revenue of $15.4 billion, representing changes of -9.11% and +0.94%, respectively, from the prior year.

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Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Devon Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.11% lower within the past month. At present, Devon Energy boasts a Zacks Rank of #3 (Hold).

With respect to valuation, Devon Energy is currently being traded at a Forward P/E ratio of 9.12. This denotes a discount relative to the industry's average Forward P/E of 10.06.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 140, placing it within the bottom 45% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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Devon Energy Corporation (DVN) : Free Stock Analysis Report

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